Question
Hi! I have a calculation that I am having trouble understanding. Could you please help? The federal government decides to spend 12 million USD on
Hi! I have a calculation that I am having trouble understanding. Could you please help?
The federal government decides to spend 12 million USD on infrastructure improvements and the margin propensity to consume is 0.65 I have to calculate the next questions:
a) expected impact on GDP
b)fiscal multiplier
c) the marginal propensity to withdraw
It would help tremendously if I could know how the formulas for these go so I can use any numbers.
Thank you!
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Managerial Economics Applications, Strategies and Tactics
Authors: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
13th edition
1285420926, 978-1285962399, 978-1285947853, 1285947851, 978-1285420929
